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Protecting one’s plans for retirement during a divorce

On Behalf of | Oct 17, 2019 | Divorce

Many individuals in New Jersey and elsewhere may place a great deal of time and effort into preparing for the golden years of life. However, certain circumstances in life can be difficult to plan for, such as the end of a marriage. Those who are facing a divorce late in life may wish to know more about how the outcome of the process might affect their futures and the steps to take to help keep their retirement plans on track.

One of the most pressing concerns for those going through a divorce late in life could pertain to the impact the process will have on retirement and investment accounts. Gaining a better understanding of these assets and the role they might play could prove vital to making informed choices during negotiations. When dividing retirement assets, experts indicate that having the necessary documentation, such as a qualified domestic relations order, is essential to preventing potentially costly tax fees and penalties.

Once a divorce is finalized, experts indicate that reviewing account information and making the necessary modifications to ensure the plan reflects one’s current wishes could also prove imperative. Studies suggest that those who are approaching retirement age may be able to keep their plans on track by contributing additional amounts of income into retirement savings. While in some cases, one could also benefit from making certain lifestyle changes to help get back on course, the need may only be temporary.

Going through the end of a marriage can be stressful and intimidating under any circumstance. Those who wish to know more about the available options to help safeguard their plans for the future during a divorce could find it helpful to consult with a family law attorney early on for guidance. An attorney in New Jersey can help a client make informed decisions and assist in forming a strategy to pursue the most favorable outcome achievable concerning his or her future during divorce proceedings.